Information technology can manage routine business processes

Many business owners introduce and use computers to help them 'stay in control' of the business as it grows. Computers can formalise and encapsulate many of the routine business processes of the business, making them simple and straightforward, and consequently more reliable and efficient. Computers can also capture the state of the business and of its customers and suppliers, providing information where and when it is needed.

A well-designed and implemented system can run the routine side of the business 'like clockwork', managing processes and leaving managers and employees with more time to develop new business, find new customers and spend longer with existing customers.

Simplifying business routines and processes

Simplifying routine business processes through IT is well within the reach of even the smallest organisation. For example, a database on a PC can be used to create a simple record system such as customer purchases. The greatest challenge is not setting up the system, but deciding what information most needs to be captured, processed and stored, and then designing and formalising the processes that will be used to do so. IT systems can then make the system run easily and efficiently.

For example, a formalised stock system means that you can readily determine whether a particular item is in stock, and which shelf it is on. If this information is kept on computers, and is available to all staff, then a customer enquiry can be responded to immediately. If the same member of staff has access to customer records and the order taking process, then goods can be dispatched and processed immediately.

This is an example of information that helps the business to add value by meeting customer needs and by reducing the time necessary to carry out a process. It also tells the business how it is doing, for instance which stock is selling and how profitably. These are the hallmarks of a good system; it helps people to do their work quickly and accurately and reduces the number of tasks in a business process, increasing throughput. Moreover, the information captured in the systems can help business owners to keep track of how they are doing.

In a growing business the opportunities for losing control are considerable. Connecting people through a computer network provides an efficient means of communication. It can help to bring people together. Such a network can be used to help ensure that information keeps flowing through the business alongside any physical products and services. This means that value-creating people and processes are connected, reducing the risk of wasted activity and losses in added value.

Capture the right information early

Designing information systems to help the business increase productivity, grow and stay in control needs careful thought and management. Here are some of the ways to stay in control. Information that is processed regularly should be entered into the computer as it is created or received, for example incoming invoices and new orders. This 'early capture' approach avoids delays in getting information to others, and ensures that information does not get lost. Paper-based information is easy to misplace or to lose entirely in the filing system.

Reduce duplication

Work is often duplicated because of multiple paper-based systems and older computer systems, which cannot readily share information. For example, purchase orders often require multiple paper copies, which may then be individually entered into a computer. Using integrated applications and making the information available to those who need it means that information only needs to be entered once.

Reduce the number of steps

Business processes can be combined in simple ways to reduce the overall time needed. With an integrated stock, ordering and customer database system, for example, an individual can complete most or even all of the order taking process.

Reduce delays

Work often spends more time in transit between people than it does actually being processed. Papers sit in 'in' and 'out' trays, or trapped within the postal system. Computer networks can cut out delays, delivering work directly to the individual's desktop.

Strip out redundant processes

Redundant business processes sometimes exist simply because no one has ever asked why they are still done. A report which someone spends two weeks compiling every quarter may no longer be relevant, and may not have been read by management for years. Re-thinking what needs to be done can ensure that only relevant information is processed.